Intermittent Manufacturing

Functional layouts & unique routings

Inventory turns
Annual costs of goods sold/average inventory

Total quality Mgmt
A management approach to long term success through customer
satisfaction

Most significant impact on a Business Operating Environment
Governernment, Economy, Competition, Customer expectations,
Quality

Customer Relationship Mgmt
the collection and analysis of information designed for sales and
marketing decision support to understand and support existing
and potential customer needs

Demand Management
The function of recognizing all demands for goods and services
to support the marketplace

Operations Splitting
intended to reduce mfg lead time

what balances the needs of Sales and the economics of
manufacturing
product simplification, product standardization, and product
specialization

Business Plan
a statement of long term strategy and revenue, cost and profit
objectives usually accompanied by budgets, projected balance
sheet and a cash flow

Hedge
when buyers purchase additional inventory, expecting prices to
rise

transaction
the channel of distribution concerned with the transfer of
ownership, specifically to negotiate sell and contact

distribution
the channel of distibution concerned with the transfer or delivery
of goods or services

objective of distribution management
provide the required level of customer service at the least total
cost

In order to maximize profit
you must have best customer service, lowest inventory
investment, lowest distribution cost, but not necessary to have:
MOST ACCURATE PRODUCTION FORECAST

strategic plan
is a statement of goals and objectives for a long range period

Aggregate inventory mgmt
is concerned with the costs and benefits of carrying the different
classes of inventory

Objectives of inventory
maximize customer service, low cost plant operations, minimum
inventory investment

Just in Time philosophy
the elimination of waste

backflushing
in order to reduce the number of transactions in a JIT
environment, companies use this system. see Chap 14

growth rate
increase in revenue

Force field diagram
measures the forces working against each other to cause a
problem

Safety Stock
Chap 11; 99.9% product coverage = 5* MAD

forecasts
forecasts are a prelude to business planning

Tracking signal
in forecast error, a tracking signal determines if the forecast
error is bias or a random error. chapter 8. used to measure the
quality of a forecast

Demand Mgmt
Chap 8. includes forecasted, service parts, branch whse rqmts,
and inter plant orders

exponential smoothing forecasting technique
new forecast = alpha latest demand + (1-alpha) previous
forecast

Production planning is a direct input to
master production scheduling.

Production plans are developed at
the aggregate level (monthly, product families)

Production plans are monthly statements of
shipments, production, and inventory broken down by product
families

Closed loop MRP systems
operate from the top down with feedback throughout the system.
chap 2

short term capacity
can be increased by overtime, inventory, or subcontracting

inputs to a realistic MPS
production plan, forecasts and capacity constraints. costs are not
necessary

objectives when establishing a MPS
labor, material, equipment and inventory are used efficiently.
Not efficient final assembly

Inputs to MRP
MPS, inventory records, BOM. Not capacity planning. MRP
assumes infinite capacity. Ch. 4

Steps in developing a MPS
Develop a preliminary MPS, check it against the available
capacity, resolve the differences between MPS and capacity. chap
3

MRP system receives direct input from
MPS. Once it is established, it is submitted to MPS to explode
demand for components

Forward Scheduling
materials are not ordered and operations are not scheduled until
the customer order is received. chap 6

ATP - available to promise
chap 3

2 major objectives of MRP
calculate mtl requirements based on demand and onhand
inventory; and keep order priorities current

pegging report
used to trace the origin of demand for a component. It shows
only the parent for which demand exists.

load on a workcenter
sum of required times for all planned orders AND all actual
orders to be run at a workcenter for a specified time period. chap
5

backward scheduling
uses machine operation sequence as well as move, queue and
wait times

Production activity control is
an execution system responsible for executing the MRP, and the
MPS. chap 6

Dispatching
the function of releasing orders to the shop floor. the function of
selecting and sequencing jobs to be run at each workcenter.

intermittent Mfg
flow of work is varied, workers must be flexible, throughput
times are long

operation overlapping
next operation is allowed to begin before the entire lot is
completed on the previous operation

critical ratio
= actual time remaining/lead time remaining. chap 6

liquid zone
mostly relates to forecast orders and any change can be made to
the MPS w/o impact to the bottom line

Inputs to MRP
MPS, inventory records, and the BOM.

input/output control
manages the queues by regulating the flow of work into the work
centers. chap 6. Technique for capacity control

strategic advantage of capacity planning
it improves scheduling performance and reduces cost

Strategic Business Plan
includes marketing plan, financial plan, engineering plan, and
production plan

Advantages of central storage
Ease of control;Inventory record accuracy is easier to
attain;safety stock is reduced

Distribution warehouse
purpose is to move and mix goods. used primarily to break down
large lots into smaller lots for shipment

Roles of warehouses
1) transportation consolidation; 2)product mixing; 3) customer
service. NOT used for inventory efficiency

market boundary
line where the laid down cost from 2 supply sources is equal.

what kind of product could best be negotiated?
made to order

companies purchase hedge inventory because
prices fluctuate in a worldwide market

order point
=demand during lead time + safety stock

periodic review system
(eg. in supermarkets). small issues from inventory, transactions
are expensive (big volume), many items ordered together.

major operating cost in a warehouse
labor

material rqmts planning outputs
planned orders for mfg and planned requisitions for purchased
components

average annual inventory
=order qty/2 + safety stock

EOQ for a purchased item
balances cost of placing order with the amount of inventory
which must be carried

EOQ for a manufactured part
balances setup cost and the cost of carrying inventory

main benefit of contract buying
suppliers will be more responsive and flexible to customer
needsd

2 major sources of specifications
buyer specification and standard specification

a supplier certification verifies
the supplier maintains and improves & documents effective
procedures